Amway Acquires XS Energy Brand

Amway, a global direct selling corporation, announced on January 14, 2015, its acquisition of the XS Energy brand. The brand was co-founded by David Vanderveen, a former Amway distributor. This strategic move aims to broaden the geographic reach of XS Energy products and bolster Amway's strategy of engaging with younger entrepreneurs.

"According to our research, no demographic is more positive about entrepreneurship than those younger than 35, which is the precise target group for the XS brand," said Amway Chairman Steve Van Andel in a press release. He added that the integration of Amway and XS will strengthen their efforts in the coming years and create more opportunities for aspiring business owners.

The XS brand has cultivated a following among younger consumers through its successful events, focus on adventure, and seamless integration of work and play—traits increasingly valued by the under-35 demographic for job satisfaction. Amway intends to infuse its broader portfolio with the energy, authenticity, and customer experience that has driven XS's success, while maintaining its core focus on entrepreneurship.

The acquisition also positions Amway more directly within the rapidly expanding energy drink market. The global energy drink sector grew from $3.8 billion in 1999 to $27.5 billion in 2013 and was projected to grow by 13% annually until 2018, according to market research. Amway had served as the exclusive distributor for XS since 2003, during which time the brand achieved annual sales of $150 million across 38 markets.

As part of the transaction, XS co-founder David Vanderveen will join Amway as Vice President and General Manager for the XS brand. Vanderveen stated his humility and happiness in partnering with Amway for the future of XS and the opportunities it will create for young entrepreneurs.